State officials announced the expansion of New York’s Direct File program, offering millions of New Yorkers the ability to file their federal and state taxes online for free. The initiative, developed in partnership with the IRS, aims to simplify the tax filing process and eliminate costly preparation fees, saving the average taxpayer approximately $260.
“New Yorkers know all too well about the long processes that come with filing taxes, and that is why the state has put significant effort in our tax program to ease those burdens,” Governor Kathy Hochul said in a release Friday. “My administration and I have pushed to expand our Direct File program to provide a quick and easy way to file your returns for free – saving hundreds of dollars in tax preparation fees.”
Launched as a pilot program in 2024, Direct File was initially available to a limited group of taxpayers with relatively simple tax returns. More than 14,000 New Yorkers participated in the pilot, with 96% reporting a positive experience.
For the 2025 tax season, eligibility has been significantly expanded. Taxpayers with an income of up to $200,000 — or $250,000 for joint filers — can now use Direct File to submit their returns at no cost. The program is best suited for individuals with straightforward tax situations, such as one or two income sources and common deductions and credits.
Acting State Tax Commissioner Amanda Hiller highlighted the program’s ease of use and accessibility. “We’re improving and expanding Direct File because filing your taxes doesn’t need to be daunting,” Hiller said. “With Direct File, you can answer simple questions instead of filling out forms or paying a preparer. It’s a safe, secure system that taxpayers can access from a smartphone, laptop, tablet, or desktop computer.”
The New York State Department of Taxation and Finance estimates that approximately 3.4 million New Yorkers will qualify for Direct File this year. The program will officially launch later this month, aligning with the start of the tax season, which concludes on April 15.
Direct File is part of Governor Hochul’s broader affordability agenda, a multi-billion dollar initiative aimed at reducing financial pressures on working families across the state.
To determine eligibility and learn more about Direct File, taxpayers are encouraged to visit the New York State Tax Department’s website.
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